What is the EB-5 Immigrant Investor Visa?
The EB-5 program is intended to encourage both “foreign investments and economic growth.” The EB-5 Immigrant Investor Visa Program is one of five employment-based (EB) preference programs in the United States.
Is the EB-5 visa program being terminated?
In February 2017 Senators Dianne Feinstein (D-CA) and Grassley, a critic of EB-5, introduced a bill in February 2017 to terminate the program. In a joint statement they claimed that, "The EB-5 program is inherently flawed.
What is the difference between EB-5 and E-2 visa?
Unlike the E-2 visa, you do not have to be a citizen of a particular country to get an EB-5 visa. As long as you meet the requirements of the EB-5 visa and you are not barred for some other reason, you should qualify to get an EB-5 visa.
Why is scrutiny of the EB-5 visa program increasing?
By 2016 scrutiny of the EB-5 program had increased as "investigators uncovered numerous cases of fraud, discovered individuals with possible ties to Chinese and Iranian intelligence using fake documents and learned that international fugitives who have laundered money had infiltrated the program."
Is EB-5 visa still available?
Under the vacated rule published by the U.S. Department of Homeland Security, several changes to the EB-5 Immigrant Investor Program that went into effect Nov. 21, 2019 are no longer in effect.
Will EB-5 come back?
After 8.5 months of nervous anticipation, the regional center EB-5 program is coming back. The EB-5 Reform & Integrity Act of 2022 was attached to the Consolidated Appropriations Act, 2022, an appropriations bill for funding the U.S. government, and then passed by the Senate, in the late hours of March 10, 2022.
Will EB-5 program be reauthorized?
EB5 Regional Center Investor Protections In the summer of last year, the regional center clause of the program expired so with the new provision of the bill, the regional center clause was reauthorized and will be in effect beginning May 15, 2022 and go through September 30, 2027 or later.
Is EB-5 Cancelled?
Foreign investors are navigating a challenging situation with the suspension of the EB-5 Regional Center Program, which, as of February 2022, has now gone on for over seven months. The regional center program had been the most commonly used EB-5 investment model since the financial crisis of 2008.
Is EB-5 investment safe?
Is EB5 Safe? It is crucial for potential investors to understand that participating in the EB-5 program, by its nature, is to engage in an investment activity where gains and losses can occur. There is no guarantee for the safety of one's capital in an EB-5 project.
How much money do you need for EB-5?
The EB-5 program requires a $1 million for a standard (non-TEA investment) and $500,000 for a Targeted Employment Area investment (TEA).
How long is an EB-5 visa good for?
two yearsThis status is good for two years. The investor and his or her family members can live and work in the U.S. During the 2-year conditional residency period, the EB-5 visa investor will be required to fulfill physical presence requirements, and cannot remain outside of the United States for more than one year.
How long does eb5 visa take?
six monthsThe average processing time for the EB-5 Visa is six months, and the initial application and petition are usually approved within 60 days from the date of filing. You will, however, have to also wait for the United States Citizenship and Immigration Services (“USCIS”) and Department of State to schedule an interview.
How much increase in net worth for EB-5?
According to USCIS.gov, in order to be eligible for the program, EB-5 investors must invest in a new commercial enterprise that was established: Expanded through the investment, resulting in at least a 40% increase in the net worth or number of employees.
Will the Program be Renewed?
The program has been beneficial to the U.S.- It has both helped stimulate the economy and create jobs. But, the program may come to an end. This is because it is no longer being automatically renewed by Congress. That being said, there is a good chance that the program will be renewed due to its positive impact.
What is the EB-5 visa?
This program is known as EB-5 for the name of the employment-based fifth preference visa that participants receive.
When will the EB-5 be finalized?
While USCIS considers this decision, we will apply the EB-5 regulations that were in effect before the rule was finalized on Nov. 21, 2019. Under the vacated rule published by the U.S. Department of Homeland Security, several changes to the EB-5 Immigrant Investor Program that went into effect Nov. 21, 2019 are no longer in effect.
What is the minimum investment amount for EB-5?
While USCIS considers this decision, we will apply the EB-5 regulations that were in effect before the rule was finalized on Nov. 21, 2019, including: The required standard minimum investment amount of $1 million and the minimum investment amount for investment in a Targeted Employment Area (TEA) of $500,000;
Why is the EB-5 program called the EB-5?
This program is known as EB-5 for the name of the employment-based fifth preference visa that participants receive. Congress created the EB-5 Program in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors.
When was the EB-5 program created?
In 1992 , Congress created the Immigrant Investor Program, also known as the Regional Center Program, which sets aside EB-5 visas for participants who invest in commercial enterprises associated with regional centers approved by USCIS based on proposals for promoting economic growth.
When did the EB-5 expire?
Alert: Statutory authorization related to the EB-5 Immigrant Investor Regional Center Program expired at midnight on June 30, 2021. This lapse in authorization does not affect EB-5 petitions filed by investors who are not seeking a visa under the Regional Center Program. Due to the lapse in authorization related to the Regional Center Program, ...
When will I-526 be accepted?
In addition, we again will accept the April 15, 2019 , version of Form I-526, Immigrant Petition by Alien Entrepreneur, because the Nov. 21, 2019, version of the form reflects updates from the now-vacated rule. Alert: Statutory authorization related to the EB-5 Immigrant Investor Regional Center Program expired at midnight on June 30, 2021.
When will the EB-5 be extended?
On Dec. 27, 2020, President Trump signed a law extending the Regional Center Program through June 30, 2021. USCIS policy on EB-5 adjudications is in Volume 6, Part G of the USCIS Policy Manual. All EB-5 investors must invest in a new commercial enterprise that was established: After Nov. 29, 1990; or. On or before Nov. 29, 1990, that was:
How many employees are required to be on an EB-5?
An EB-5 investor must invest the required amount of capital in a new commercial enterprise that will create full-time positions for at least 10 qualifying employees.
How long does an EB-5 investor have to show job maintenance?
The investor must show that the number of existing employees is, or will be, no less than the pre-investment level for a period of at least two years.
What is the minimum investment amount for EB-5?
21, 2019, including: The required standard minimum investment amount of $1 million and the minimum investment amount for investment in a Targeted Employment Area (TEA) of $500,000; ...
What is the I-485 form?
Form I-485, Application to Register Permanent Residence or Adjust Status, and any Form I-765, Application for Employment Authorization, and Form I-131, Application for Travel Document, associated with a Form I-485 application that is based on a Form I-526 filed by an approved regional center.
When will I-526 be accepted?
In addition, we again will accept the April 15, 2019 , version of Form I-526, Immigrant Petition by Alien Entrepreneur, because the Nov. 21, 2019, version of the form reflects updates from the now-vacated rule. Alert: Statutory authorization related to the EB-5 Immigrant Investor Regional Center Program expired at midnight on June 30, 2021.
Is there a retention date for I-526?
No priority date retention based on an approved Form I-526;
What is an EB-5 visa?
The EB-5 visa provides a method of obtaining a green card for foreign nationals who invest in a "new commercial enterprise" in the United States. The EB-5 program "affords foreign nationals and their spouses and unmarried children under age 21 the ability to obtain a U.S. visa based solely upon a minimum investment in a for-profit enterprise that creates or retains a specified number of jobs". To obtain the visa, individuals must invest $1,000,000 or $1,800,000 after Nov 21, 2019 (or at least $500,000 or $900,000 after November 21, 2019 in a Targeted Employment Area - high unemployment or rural area), creating or preserving at least 10 jobs for U.S. workers excluding the investor and their immediate family.
When will the EB-5 be released?
The US Citizenship and Immigration Services (USCIS), published regulations making major changes in the EB-5 Immigrant Investor Program, effective 21 November 2019. The rules say that states can no longer designate regional centers; this duty now belongs to the Department of Homeland Security (DHS), which manages USCIS.
What is the SEC whistleblower program?
In 2013, the U. S. Securities and Exchange Commission (SEC) issued an investor alert to warn investors about an increase in fraudulent investment scams that exploit the EB-5 visa program. The SEC listed "warning signs of fraud" such as automatic, timely and/or guaranteed "promises of a visa or permanent resident status" and established the SEC Whistleblower Program to offer a monetary award for "exposing EB-5 fraud". Under the SEC Whistleblower Program, individuals are eligible to receive a reward for providing the SEC with original information about securities fraud, including EB-5 fraud. If the SEC uses the individual's information to bring a successful enforcement action, he or she is eligible to receive 10% to 30% of the monetary sanctions collected as an award. A whistleblower's tip about a $147 million EB-5 scheme has already resulted in a $14.7 million SEC award.
Why did Kushner promote EB-5 to Chinese investors?
Starting on May 6, 2017, a number of major media outlets began raising concerns about ethical implications regarding the way in which the EB-5 program was promoted to potential Chinese investors by Kushner Companies, because of Jared Kushner 's pivotal and influential role in the Presidency of Donald Trump, his father-in-law. Chinese investors were shown a photo of Pres. Trump in a marketing slide show, suggesting the ease of getting a green card. The Independent headlined with "Trump and Kushner exploitation of presidency 'unlike anything we have ever seen before'.
What is the purpose of the EB-5?
The U. S. Citizenship and Immigration Services (USCIS) sets guidelines for EB-5 projects and monitors compliance with immigration rules. Under EB-5 visa guidelines, "investors must put their capital at risk and the green card is not guaranteed". The USCIS also evaluates approvals for regional centers.
What was Lobsang Dargey's EB-5 fraud?
On August 24, 2015 the SEC filed civil fraud charges against Lobsang Dargey for his misuse of the EB-5 Visa program by misappropriating about $136 million from Chinese investors through his Path America entity. The SEC received a settlement offer in January 2017 that "signaled "a possible resolution to the high-profile case".
How many EB-5 applications were filed in 2011?
In 2011, USCIS began making a number of changes to the program in hopes of increasing the number of applicants. By the end of the 2011 fiscal year, more than 3,800 EB-5 applications had been filed, compared to fewer than 800 applications in 2007.
The Change in Vietnamese Final Action Date Came as a Surprise
Throughout 2020 and most of 2021, given the disruptions caused by COVID-19, the final action date for Vietnamese EB-5 visa applicants remained stagnant at April 15, 2018 as of June 2021.
The Sharp Change in the Vietnamese Final Action Date, Explained
Ultimately, the unexpected change in the Vietnamese final action date is not that unrealistic. In fact, Vietnam is not the only country to have experienced such a phenomenon–– India, too, went through the same situation in July 2020.
How to get an EB-5 visa?
To get an EB-5 visa, an investor can make a direct investment or they can invest in a regional center. Regional centers are specialized companies that collect investment funds from multiple EB-5 investors to fund a large-scale project such as a resort or apartment complex.
What are the requirements for an EB-5 visa?
One of the key requirements of the EB-5 visa is that the funds used for an EB-5 investment must be lawfully obtained.
Can an EB-5 investor get a green card?
The EB-5 visa is an immigrant visa category, so as a successful EB-5 applicant, you can get your green card are be on the path to US citizenship. As an EB-5 investor, your spouse and your unmarried children under 21 years old can also qualify to get their green cards. Your children have access to a US education.
Do you have to invest money to get an EB-5 visa?
No, an investor does not have to invest money to qualify for an EB-5 visa.
Do you have to work for a sponsor company on an EB-5?
As an approved EB-5 visa holder, you do not have to work for a sponsor company. You are free to work in any lawful capacity. You are free to live and work anywhere in the United States. You are eligible to work in the US without having to apply for special work authorization. 3.
Is This the End of the Investment Visa Program Entirely?
No, but the options available to foreign investors could be dramatically reduced or changed. The EB-5 investment visa program itself will not be eliminated, just the option to invest through a regional center. That distinction is significant. Over the past few years, the vast majority of the investment visas issued by the U.S.
Worried About the Impact of Regional Center Changes on Your Investment Visa Status? We Can Help
Even if the program is given an extension, it will likely be more difficult and costly for the investor in the future. If you are considering applying for an EB-5 investment visa and would like to take advantage of the regional center program, contact our team of EB-5 immigration lawyers at Tucker, Nong & Associates today.
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Who Is Eligible For The EB-5 Program?
Will The Program Be Renewed?
- The program has been beneficial to the U.S.- It has both helped stimulate the economy and create jobs. But, the program may come to an end. This is because it is no longer being automatically renewed by Congress. That being said, there is a good chance that the program will be renewed due to its positive impact. If you have any questions or concern...
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Summary
The United States EB-5 visa, employment-based fifth preference category or EB-5 Immigrant Investor Visa Program, created in 1990 by the Immigration Act of 1990, provides a method for eligible Immigrant Investors to become lawful permanent residents—informally known as "green card" holders—by investing substantial capital to finance a business in the United States that will employ at least 10 American workers. The current investment amount is controversial as USCIS h…
Overview
The EB-5 visa provides a method of obtaining a green card for foreign nationals who invest in a "new commercial enterprise" in the United States. The EB-5 program "affords foreign nationals and their spouses and unmarried children under age 21 the ability to obtain a U.S. visa based solely upon a minimum investment in a for-profit enterprise that creates or retains a specified number of jobs". To obtain the visa, individuals must invest $1,000,000 or $1,800,000 after November 21, 2…
EB-5 regional center investment projects
Hotel and multi-use developments financed with EB-5 investments include Hilton, Hyatt Hotels, Marriott's, Starwood's SLS Hotel & Casino.
In 2016 Forbes cited Hudson Yards, Manhattan as a "fine example" of one of the "very successful projects" resulting from EB-5 investments.
In southern California, EB-5 projects include Europa Village, in Temecula, the Hilton Garden Inn i…
EB-5 direct investment projects
Select investors, especially from India, elect to invest in their own investment project. EB-5 direct investment projects include franchised restaurants, hotels, healthcare providers, preschools as well as other independent businesses. Funds can be pooled but it is more common for investors to have a controlling, majority interest in the business. Demand for direct investment opportunities has significantly increased as of July 2021 due to the lowered investment amount of $500,000 a…
History
Congress created the employment-based fifth preference category (EB-5) visa program in 1990 to "create jobs for U.S. workers and to infuse new capital into the U.S. economy". At that time the program was directed towards "alien entrepreneurs" who would not only invest $1 million or $500,000 in a "new commercial enterprise" but would also "engage in the management of the new enterprise" creating ten full-time jobs for U.S. citizens or lawful permanent residents. In order to …
Targeted Employment Areas
The original EB-5 law required investment in a Targeted Employment Area. This meant that the area for potential investment had to be either rural or have a "jobless rate" representing "150% of the national average". However, over time regions and states that wanted both the development and the employment, and developers became more skilled in "crafting" an acceptable targeted area (TEA)s, an "essential part of gaining USCIS approval". A June 2014 Fortune article claimed th…
EB-5 Regional Centers
"The EB-5 Regional Center Program creates jobs and spurs capital investment in communities across the nation."
The 1993 Appropriations Act amended the EB-5 program to create the Immigrant Investor Pilot Program (IIPP), which allowed foreign nationals to invest in an economic unit called a regional center, or "economic unit" [referred to as regional centers]. RCs promote economic growth, "inclu…
Regulatory bodies
The investment remaining at risk throughout conditional residency is a fundamental program requirement, and the petitions of those investors who cannot provide evidence that they met this requirement will be denied.— SEC Reuters interview May 12, 2017
USIF said the firm was "committed to strict adherence to securities and all applicable laws,"
The Securities and Exchange Commission (SEC) considers some "EB-5 offerings" to be securitie…